The most recent settlement price of CME Fed Funds futures maturing at the end of Dec 22' is 96.76. You believe that Jay Powell and FOMC will continue to be aggressive in attempting to fight inflation and issue three more 50 bp rate hikes by Dec 2022, meaning that the Fed Funds rate will be 4% or 400 bps by this time. Jay Powell doesn't disappoint your expectation, in fact he overwhelms as the Fed Funds rate is at 4.50% or 450 bps by the end of 2022. How much money have you made or lost by the end of Dec 22' on this Fed Funds futures trade, assuming you made the "right" trade (the one in line with your views of where the Fed Funds rate will go versus the market forecast for the rate), and do so on 100 Fed Funds futures contracts, each with a $4,167 multiplier per point?

Group of answer choices

$0, the "right" trade was to do nothing.

$76

$126

$316,692

$525,042